so. close to the heart. and. we'll. bring you the latest in science and technology from the realm of. the future are covered. john berman here broadcasting live from washington d.c. coming up today on the big picture.

would you take three. three. three. three. year. old sleeve. for your media drug free media card. x. times or stacy herbert this is the kaiser report gold saluting

a world economy breakdown using pills more macs that's our first headline their goal gives a standing ovation for the obama boehner masterpiece of political theater so we've seen in america the political theater getting crazier and crazier but this is the important thing is that how gold responded and obviously always the deal is going to be done right we knew that but we have always told everybody that gold is responding to this collapse in american empire yes it is responding its response to the collapse and free up money it's a response to the collapse and the american empire exactly they had a great run after world war two but now it's run its course and now it's all falling. part in all the satellites that rely on the u.s. for their large and all those military contractors and client states and puppet states that got all that free money from a corrupt cop talk receive america they're all being choked and then they want to

throw money behind gold and silver the price keeps going higher and this will continue because no man of growth will support this amount of debt it's impossible to not fanatically impossible those five hundred trillion in debt out there in those terms ten planets worth of earthlings slaving away twenty four seven will never be paid back and the other important thing to note here max is i really believe that this political theater is at this point the only thing keeping the us dollar afloat it used to be backed by gold and then it was backed by oil and i guess the industry and productivity of americans now all those other things are gone right and all you have is this political theater to make people think that there's actually something there and well you know the stalling because they're hoping that at some point growth kicks in but you hit peak saturation of debt and two thousand and seven and no amount of accounting fraud or trickery or gurning

made off i call it these gaming can now rejigger the board so that you've got any amount of growth to satisfy this amount of debt so they're talking about debt collapse all over the world is available debt lumps that's what we're talking about but speaking of wacko insane you know political actors political leaders and alice's in debt rao hints of emerging economy crises so here's reuters they look at the us and this silly brinksmanship in the crazy fighting that goes on over nothing debt default or ratings downgrade political deadlock such terms once associated primarily with the developing world now abound in the mighty united states i would say it was the once mighty united states and they interview a. policy a foreign policy expert who says we attend a lot of meetings with latin americans and we used to complain to them about the problems they had and now they like to say to us that sounds just like the us right

well look at countries like brazil for example they got out from underneath the i.m.f. pression economic pressure and the economy is doing great but the us how are they going to escape financial oppression from the banking terrorists how are they going to skate the likes of a lloyd blankfein or a jamie diamond how are they going to get out from underneath that well the other thing that you saw with these military dictatorships throughout latin america the banana republics is the reason why they were banana republics is the chiquita banana company right they were actually corporate occupied but none of the countries of latin america had anything to do with running their country for real which left them just with play acting like a crazy prince where the real country and all the economy and all the wealth was taken by chiquita and other corporations like coca-cola so there was nothing there but for them to pretend that they were ruling the country and they acted very crazy to united fruit i believe was what originally when they moved in they occupied

those social american a latin american countries and they got such a brand exposure to such toxic militarization of those economies and the slaughter of folks and killing of union members that they had to rebrand as chiquita. we kill list union organizers. union organization is going to be slaughtered well let's look at these videos to see what america might look like the next threat the next time the deficit ceiling is hit here's india's parliament you see a nice brawl there let's turn to the punjab parliament. and then just for a little diversity here max we're going to turn to afghanistan and here's two women busting it out in the floor of the afghan parliament so i think this is the next step the tea party female mother sling with michele bachmann. the other sharks are once again with the glue bachmann and sarah palin to get those two in the mud mud wrestling for votes so i vote for ok let's move on to some serious stuff here looks

talk about what is going on for the banana republic is ation of america and the biggest corporate occupier is the banks and this is our headline here max the fed audit so this is from senator bernie sanders web site he was responsible for inserting into the wall street reform bill last year a clause which demanded one time audit of the fed and that is out and what they discovered is that the federal reserve lent out an emergency programs a total of sixteen trillion dollars u.s. banks foreign banks and corporations like g.e. and according to the report however there are two very important points here the fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the financial firms that they were bailing out they mentioned jamie dimon as benefiting from this cause he sat on the board of the new york fed and bailed out j.p.

morgan and then the fed the investigation also revealed that the fed outsourced most of its emergency lending programs to private contractors many of it which also were recipients of extremely low interest and then secret loans jamie gonna drop on his head as a kid or what i mean here's a guy who's given billions of dollars total exemption from accountability and then he loses that became a few more billion dollars he makes a few bucks ok that's true but compared to like a real player out there somebody like an oligarch and one of these other countries he's a pusher. the guy must be like to live you know what you're buying his presentation this is a member it's theater max and the theater he's claiming to only make a few billion a year and he's just a poor schmuck who doesn't know what he's doing he's trying his hardest but in fact these guys own everything they've taken control of everything he could have he could be worth five trillion who knows because it's

a black hole of not accountability j.p. morgan is the biggest fed bank and they're pretending they've outsourced it the fed it is j.p. morgan so they're pretending they go we outsource the these emergency lending programs to j.p. morgan and they're having to say they outsource it's j.p. morgan to hide the fact that the fed is j.p. morgan ok so bernie sanders got one time on it that's a yes and there's no more of coming there's no more audit coming and in a long time or do we discovered that there was a massive fraud on wall street jamie diamond did morgan the whole group massive fraud yes but it wasn't continuing on the theme of profits you brought up corporate profits a boom in corporate profits a bust and jobs so now that we're officially eighteen months out of recession try to tell that. remember this is a banana republic and this is something like papa doc would have told us or or could alfie you know these are the same sort of statements they would make yeah we're out of recession anyway of the alleged growth that has happened only one

percent of it has gone to wages and salaries only one percent of that growth is spent fifteen percent fifty percent and twenty five percent in the previous three recessions by contrast corporate profits accounted for eighty eight percent of the growth so this is clear banana republican isn't on the one percent of trickle down to prison guards. and the corporate profits of course they are staying within the corporate fear if you will because that one two percent of the top elite are have engineer to centrally sluiced way directly from the fed and wall street into their pocket vie passing the general population and again you have the bifurcation of society this class war developing and the beautiful part about it is that people in america are so drugged up on thorazine and other anti-psychotic drugs they don't even know this now they also mentioned this article that corporations have one point nine trillion dollars in cash but are reluctant to spend it and they speak to the caterpillar c.e.o.

doug old perhaps hellman and he said the reason they're not spending is lack of clarity on us deficit reduction plan trade policy regulation much needed tax reform blah blah blah but the important thing here he says the absence of a long term plan to improve the country's deteriorating infrastructure does not create an environment that provides our customers with confidence to invest so here's the c.e.o. of caterpillar who is you know these are one of the guys involved with the business roundtable involved with the american chamber of commerce that lobby to make sure that people are so stupid that they associate any sort of plan or action on behalf of the the citizen but that's marxist and socialism so here they've they've created this environment where you have dilapidated like bombed out infrastructure that looks worse than any morocco or any at north african country it looks worse than that plus they've got a lot of those caterpillar tractors in places like palestine running over folks like rachel corrie so that's deflecting their attention from doing anything

positive for their own country as well yeah but let's talk about the u.s. here because this is what we're talking about being important thing is the u.s. is collapsing and there are a lot of political things that they do all over the world but the fact is america itself is looking like a big giant ghetto and wherever you go all that ok of america rather is probably stronger daedalus chicago did. right problems but this is saying group of corporations caterpillars are enabling getafe occasion and ballast on something in detroit because you got a minority of c.e.o.'s who take all that money from the government put it in their pockets and they claim that while there's a lot of infrastructure there to spread around amongst the population because your response for pool and infrastructure and we are building infrastructure because we're parked on the wrong themselves how can that be possibly construed as a representative democracy we've got in florida so you know i'm still in money wholesale and i'm claiming that they can't possibly distribute them because they don't have the money to do so because there's still the body and finally max for the entire picture of a banana republic so they were been fighting over this deficit right eleven

stunning facts about america's prisons prisons cost america six hundred billion dollars per year compare that to medicare four hundred fifty two billion per year medicaid which is medical care for poor people that's less than two hundred seventy five billion so us prisons cost six hundred billion to the taxpayer between eighty seven and two thousand and seven the national prison population tripled seven hundred thirty four out of every one hundred thousand americans are behind bars in the us far and away the highest number in the world and typically pro programs cost taxpayers seven dollars and forty seven cents per day per day while prisons cost seventy dollars and ninety five cents per day per inmate nationwide which is more than the minimum wage so taxpayers are there willing to lock up a huge percentage of the population one in nine black men between the ages of twenty and thirty four are in prison they're willing to spend more than the minimum

wage to keep these guys in prison right in fact as the next election cycles coming up the only way to get in on that ticket on the republican party is a promise to lock up more so more cost this is never an issue that's ever raised as a way to lower the deficit and other building more and more persons yeah and what equipment of a used to build a person's own caterpillar. i guess are the available to build prisons but not bridges maybe that's recent explains their statement that you need more infrastructure their infrastructure could be prisons more prison more slave labor well that's a stock i'm going to have to pay by both hands thanks eric thanks so much thank you max don't go away much more coming your way so stay right there. in the me.

today violence is once again flared up little these are the images the world is seeing from the streets of kandahar. for a shelter only a. little .

welcome back to the kaiser report i'm max keiser time now to go up to canada and speak our stuff on all the new of the freedom a radio dot com stuff on a welcome back to the kaiser report thanks max great to be here so stuff i'm going into the u.s. deficit thinner the absurd there on the brink of chaos every leader of the free oh we're all talking about more debt. ceiling and euro tarp plus the tsunami games in the u.s. what is going on well china says or at least a private chinese rating agency says or makes the argument that the u.s. has already defaulted through devaluing of the u.s. against other currencies and that has been enormous and significant just over the past ten years the u.s. dollar has lost forty percent or more the dow in its real returns since new year's

day two thousand has lost almost thirty four percent and so what's happened is a devaluing of the dollar against other currencies that as we know is a result of two things which are closely related to u.s. debt the first is keeping interest rates artificially low and the second is just printing money and how is that for printing money but as we all know they're aiming to buy or have bought over two trillion dollars of u.s. debt and they become pretty much the entire holder of the u.s. mortgage industry and so if you're paying your visa with your master card it's pretty clear that you have already shown that you're unable to pay your debts that the u.s. is functionally in the father just has these federal reserve tricks and shenanigans to prop up at least a little longer and so what everybody's talking about are minor tweaks you know it's as they say arranging the deck to chairs on the titanic long after the iceberg was hit now you talk about the rise of the debt versus growth and going back a few decades the amount of debt that was increased would generate some appreciable growth in g.d.p. going back thirty or thirty five years you have a dollar of debt you got

a dollar's worth of g.d.p. growth. and then as the economy began to suffer from overindebtedness and as the banks started to crowd their way into the general economy of the real economy it took seven or eight dollars of debt to create one dollar video pay and then iraq two thousand and seven two thousand and eight you had this debt saturation level where no amount of debt creation will ever create another unit of growth because you can't you know put ten pounds of garbage into a five pound garbage bag they just can't absorb more debt so this message seems pretty clear that absorbs more debt so why does policymakers insist on attacking this problem like i'm talking about you know paul krugman of the new york times famously his solution is to add more debt how why they keep talking about this no more rule no more debt well look expecting sane fiscal policy out of the federal reserve and state sponsored states aboard and economists like paul krugman it's like expecting gambling addicts to suddenly walk away from the table what is the

only solution that the government has when it faces a crisis caused by its own corruption and thievery double down baby double down double down that's all it can do is continue to do the same thing now i think it's important to remember that the political class like the ruling on the darks they're fine i mean they've got their holdings probably in swiss francs in gold and they're all set they can do whatever they want it's the average person and particularly the poor person in the retired person who is going to face the real calamity when this mess hits the fan so they'd better sort of secure they've got their escape hatch they've got their golden parachutes everybody out so they can continue to mess around and without any particular fear of their own finances going in the toilet all right you imagine double down double down and i mean they got me thinking of the martin gal betting system are you familiar with the martin gal betting system i am not ok martin betting system is the gambling system where you go to the roulette wheel and you bet on red if you lose you double up. and if you lose again you

double up and you keep doubling up on every bet until you've actually hit red and then you make a lot of money now the problem is you go broke before you hit red now on wall street they engage in this martin gayle betting system because the money that they get to make the bets is free from the federal reserve a zero percent interest rate and they never have to pay off any they're losing bets meanwhile the average person is in the stock market any time they suffer a loss they actually have to suffer a loss show you've got this diametric you know a proposition in the investing world where people are saying well there's a lot of opportunity in the stock market but it's different if year out of wall street unlimited credit and you never suffer a loss so why do the average people out there whether it's canada america or anywhere else in europe why do they insist on all was getting the short end of the stick either they get the worst rates on their credit cards and they get the worst

gambling percentage in the stock market they get the worst jobs at the worst of everything or are they settling for the worst of everything well i think that most people are very afraid i mean this is going to be a long term historical perspective but i'll keep it short most people are very afraid to change the fundamental social order and what we're talking about here is a fundamental social order that is much closer to fascism than it is to the free market you do not have a free market when government controls the currency you do not have to mock prosy when government controls the currency what you have is a bribe ocracy where government prints money and steals from the unborn in order to bribe voters for power in the here and now so the fundamental system has to be gotten rid of if you have to get rid of government control of currency currency has to be privatized that way you can't run deficits you can't fund these god awful wars with your currency and debt and the whole system is going to change fundamentally you have to get government out of currency and you have to get the government to stop manipulating the market with interest rates we all know that

real the. isn't that the government is driving down interest rates so much is to bribe its friends to give them basically free loans at the taxpayers' expense and also to cut down its own costs of having to repay its debt i mean if the government had to repay its debt in any kind of reasonable mortgage loan we would be in default already so fundamentally you have to change the system and it has to be a very fundamental change in the system people are very afraid of that sometimes it goes the american revolutionary way sometimes it goes the russian revolutionary way or the french revolutionary way and so people are very scared they're just going to kind of huddle and hope things blow over and hope things get better as they have in the past remember we bailed out the savings and loan banks in the one nine hundred and one nine hundred eighty s. bailed out long-term capital management in one thousand nine hundred eight the bailout to be going on for a long time people think it's going to get better it's going to get better this time it's just not and until people realize that they're not going to get off their couches stop watching t.v. take to the streets take to the blogosphere confront their neighbors with the falsehoods that they believe until people recognize that the system is there down

and buried they're not going to really advocate for change and it's taking a while for there to sink in for people right now our savings and loan crisis was bailed out also fifteen hundred bankers went to jail long term capital management not only did no bankers go to jail but greenspan lowered interest rates thus having savers and retirees subsidize the belle out and they got payments for a few guys in greenwich connecticut and when you talk about the stealing from the unborn course i've always my contentions are as bad that this is why the tea party is against abortion is because they need new products to inherit the debts and to. go to prison and let me ask you this the prison system in america cost six hundred billion dollars a year is a possible that a small government in the highest prison population in the world other than what i just mentioned at the tea party need to justify their religious extremism well the tea party the prison system has become just another handout it's become just

another subsidized industry which is. one of the reasons why you can't get rid of these crazy ridiculous laws like drug laws and sarbanes oxley and all of these regulations which add up to precisely nothing people say all of the current crisis was caught about by deregulation when regulations vastly increased under the bush jr presidency so you know the prison industry and the prison industries counted in g.d.p. of all the insane things that count in g.d.p. you can't people getting sick in g.d.p. you can't the prison system in g.d.p. this is complete nonsense i mean you can only punish us because the people in prison are working for sixteen cents an hour and what the prison builders and operators are making fabulous wealth on the stock exchange so they're saying this is economy is growing yeah because you know slave labor is such a positive aspect of capitalist economic growth of course you'd want to count that i mean it's the statistics are completely meaningless we're living in this sort of profit a house of cards you know like the soviet statistics the five year production plans that are going beautifully i mean this is all complete nonsense we're living in

a propaganda delusion and it's not going to take long for this to to come crashing down and for people to wake up the only danger the only danger max and it is a significant danger which is i think why it's so important that we take to the airwaves and yell the truth as much as humanly possible the great danger is that people are going to think that freedom is the problem the problem is coercion the problem is monopoly the problem is the violent counterfeiting of currency the selling off of people's future through the coercive power of the state it is violence that is causing all of these problems it is not peace it is not trade it is not property rights it is not freedom and it certainly is not the free market right now talking about counterfeiting the fed had a little audit thanks to bernie sanders and they revealed sixteen trillion in a loan as they were made to foreign banks and j.p. morgan goldman sachs and jamie diamond out exemption as part of this bailout money and loan program to add to his other nefarious activities even. that's sixteen

trillion dollars balance figure and why what is america so concerned about going out these foreign banks unless of course america reports to foreign entities i think america as a whole is pretty clueless about the fed it's really complicated it's pretty abstract and of course it's the last thing they're going to teach you in government schools and government schools they can teach you how the government ended slavery and the government saved us from our system in the great depression and the government helps the poor and sick and the old you get all that propaganda you're not going to get the actual basis of government power which is counterfeiting and theft so yeah it's monstrous and what is truly astounding about this is the way they're handing out these waivers for conflict of interest c.e.o. j.p. morgan chase served on the new york fed's board of directors at the same time that is bankruptcy of almost four hundred billion dollars in financial assistance from the thread william dudley now the new york fed president granted a waiver to keep his investments in a.i.g. n.j. and general electric at the same time that they've given

a bailout funds and the reason that the fed gave for not making this guy sell its holdings is because they did not want to create the appearance of a conflict of an i mean so it's ok to have a conflict of interest you just don't want to create an appearance of it the fed outsourced all almost all of its operations for these emergency lending programs to private contractors j.p. morgan chase morgan stanley wells fargo the usual suspects these guys all got trillions of dollars in federal loans at near zero interest rates and two thirds of these contracts were no bid contracts morgan stanley got a one hundred billion dollars to help manage the fed bailout of a.i.g. i mean frankly this is complete peak feeding shark attack trough weeding at the taxpayers' expense and it just shows you that the government doesn't have rules the government is an exemption from rules it is an exemption from the rule of theft through taxation it is an exemption of the rule of counterfeiting for the federal reserve and it is an exemption of any reasonable rules of conflict of interest by just handing out a get a waiver a get away for your find it's madness all right one last question finally the

latest polls show that ron paul could possibly be fair. obama two thousand and twelve is it too late for ron paul his promised and the i.r.s. cia for military bases etc i guess i do know that you have let me give you a short answer that a very slightly longer one which is now i think we have time for a longer one i know very quick don't go anywhere near the government you don't want to be promoted to captain of the titanic after the ship is just about to go down because then all anyone will remember as a libertarian was in power when everything went down it was credit freedom for another thousand years so i say stupid of the man stand back speak the truth don't get involved all right stephen all there thanks once again for being back on the kaiser report thanks all that's all the time we have for this week oh if the kaiser report with me max kaiser i want to thank my guest. if you want to send me an e-mail please this is a report at r g t v are you at all next time this is my starter saying i are.

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